TSE:AQN

Algonquin Power & Utilities Corp (AQN.TO)

8.06
-0.03 (0.37%)
as of Aug 6, 2026, 8:00:01 pm Market Open.
1393 watching
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Investor Insights
star iconAug 6, 2026, 12:00 am

This summary was created by AI, based on 28 opinions in the last 12 months.

Algonquin Power & Utilities Corp (AQN) has experienced significant challenges over the past few years, particularly stemming from high debt levels associated with its aggressive acquisitions in the renewable sector, which led to a dividend cut and a loss of investor confidence. Despite these struggles, recent reviews indicate that the company is undergoing a transformation, refocusing on its core regulated utility business after divesting most of its renewable assets. Analysts have observed signs of improvement, suggesting that AQN is gradually regaining footing under new management. However, the stock remains in the 'penalty box' and is viewed as a 'show-me' stock, awaiting proof of its capability to generate consistent profits again. While there is optimism about future earnings potential and attractive yields, many experts suggest a cautious approach due to the lingering restructuring phase.

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Consensus
Cautious
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Valuation
Undervalued
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TOP PICK
Power demand and renewable power increases. The company did some equity issues that has not been well received. There is also some water holdings that are interesting. There is a stable distribution arm. A steady dividend grower. (Analysts’ price target is $21.21)
TOP PICK

Attractive dividend with a good growth profile. Good ESG candidate so funds should flow into this. In the last little while, we have seen some decline in the sector. An attractive entry price. There is 1400 additional mega watts of energy coming online. A good rewarder of share holders. (Analysts’ price target is $21.01)

PAST TOP PICK
(A Top Pick Jul 08/20, Up 12%) Still likes it and could be another top pick. All the utilities have been hit because bond yields have started to rise. But AQN has a strong growth profile through its capex plan, with $5B of its $9B is happening in 2021. AQN's valuation is in line with peers, but boasts a stronger growth profile. This will let AQN keep generating strong earnings even if bond yields rise.
PAST TOP PICK
(A Top Pick Jul 28/20, Up 7%) Has fallen out of favour, but he is not sure why. One of the worst performers for 2021 for his fund, but still a believer in the company.
WATCH
Sold on valuation. Good business. Mostly US focused. He'll keep it on his radar. Right now, prefers other exposure in that space.
PAST TOP PICK
(A Top Pick May 13/20, Up 3%) Still likes it. It's pulled back with the entire renewable space, so this is a great time to enter. Two-thirds of business are regulated utilities and the rest is renewables. The latter benefits from the US green trend. Pays an attractive 4.5% dividend that the company has just risen 10%. The company expects to grow earnings 8-10% annually in coming 4-5 years.
HOLD

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The stock yields 4.3% currently and is trading at around 13.5x forward EBITDA. They are also reducing leverage. The space is seeing lower investor interest in general, which may be why the stock has struggled recently. No reason to sell. Unlock Premium - Try 5i Free

PARTIAL BUY
The Texas power outage was somewhat of a temporary set-back. These do happen. Short term negatives on companies you like just mean it’s a good time to get in. It is a good time to start building a position in the sector.
BUY

A great way to play the US expansion into renewable power in the coming decade. The valuation has risen, but took a dip during the Texas freeze last winter (was a buying opportunity). The stock is still compelling to buy. Likes it. The renewable stocks ran ahead of themselves in January-February, pricing in too many years of growth, but this correction was healthy. Valuations are still not cheap, but long-term returns still look good. Also consider Boralex and Northland Power.

BUY
It is a good way to play renewable energy. It gives you a nice balance of renewable and non-renewable. They pay a good dividend. Their spending will be 60-70% into renewable in the future. Sometimes money is invested into renewable energy just to be seen doing it.
PAST TOP PICK
(A Top Pick May 13/20, Up 14%) In 2020, chose names that could hold in during an uncertain time. Plans to increase dividend by about 10% this year, possibly mid-high single digit growth going forward. Benefits from de-carbonization.
BUY
You really have to own some renewable power. High growth area. AQN is a good way to play. His top pick in the hybrid renewable sector. Has non-renewables, but its growth projects are all renewable. Valuation is below peers. Yield is around 3.5%.
BUY
She continues to hold it. The utility space has pulled back (AQN is down 15%) because of rising yields. AQN pays a yield under 4%. Its growth outlook is strong for years to come, and AQN enjoy robust cash flow primarily in the U.S. AQN'S dividend that will rise 10% this year, though that growth may moderate in years to come as AQN invests more in its business. Renewable energy remains a good investment, though the group was overextended coming into 2020; she was waiting for a pullback and it's happened.
BUY ON WEAKNESS
Allan Tong’s Discover Picks As of March 8, this Canadian wind and solar power producer has tumbled nearly 15% off its high of $22.67 of just a month ago. The good news is that AQN‘s PE has slipped to 18.4x, which trades below the industry average of 19.2x. In addition to the current rotation, another factor pressuring Algonquin is last week’s Q4 report in which its EPS of $0.21 fell just a penny short of the street’s expected $0.22. Similarly, AQN’s adjusted EPS for the full year of $0.64 fell shy of management’s guidance of $0.65-0.70. Not a disaster, since Q4 EPS and revenues rose year-over-year so AQN stock is an oversold stock. Read 3 Overdone and Oversold Stocks for our full analysis.
BUY ON WEAKNESS
The catalyst for the sector is whether or not the Biden administration will be supportive of green energy. The Trudeau government already is. There's more upside to this stock. With sector rotation out of tech, you want to look for an entry point. We're going to see higher growth opportunities for renewables, so you want exposure.
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